The eastern United States is on the cusp of a much colder pattern that is forecast to prevail in February and continue into March because of a central Pacific El Nino, which is seen slowly weakening through summer, according to forecaster DTN.
Articles from Winter
Storage Deficits, Returning Heat Steal Spotlight from Production; September Natural Gas Forwards Increase
September natural gas prices rose by an average 3 cents from Aug. 16-22 as long-range weather outlooks showed a much hotter end for August and into early September. Storage concerns remained a bullish catalyst for the market as well, even as the week’s storage report delivered an on-target injection.
California regulators have proposed setting a moratorium on new commercial and industrial (C/I) connections this winter as a means of ensuring reliability for existing customers.
With three natural gas transmission pipelines down and Aliso Canyon underground gas storage operations limited, an updated assessment of winter energy supplies issued Tuesday indicated the Southern California region faces greater uncertainty than a year ago, with gas curtailments to large industrial users more likely.
North Dakota’s Bakken Shale soon will need more infrastructure to expand natural gas capture processes as flaring moves higher, Department of Mineral Resources Director Lynn Helms said Wednesday.
December natural gas is set to open unchanged Monday morning at $2.96 as weather forecasts hint at cooling to come, but show no immediately pervasive trends beyond the current warm-dominated patterns. Overnight oil markets inched higher.
With long-term weather forecasts pointing to possibly another warm winter ahead, natural gas forward markets fell an average 12 cents between Oct. 13 and 19, according to NGI’s Forward Look.
November natural gas is expected to open 8 cents lower Monday morning at $2.92 as overnight weather models called for decreased heating load. Overnight oil markets rose.
November natural gas is set to open unchanged Thursday morning at $2.94 as traders factor in expected lean storage figures into the supply-demand balance. Overnight oil markets rose.
Not even a larger-than-expected withdrawal from storage was enough to soften the blow of a more than 20-cent drop in March natural gas forwards prices as the main focus remains on weather, or the lack thereof.